What is demand Curve?
In economics, Demand curve is a graphical presentation of the demand schedule. That is obtained by plotting a need schedule.
The need schedule deserve to be converted right into a need curve through graphically plotting the different combinations that price and also quantity demanded of a product.
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Individual demand curve
Individual need curve: the is the curve that shows different quantities the a commodity i beg your pardon an individual is ready to acquisition at all possible prices in a offered time duration with an assumption that other determinants are constant.
Refer to Table 1 below, the individual demand schedules that A and B, when plotted ~ above a graph, will represent the individual demand curves, i beg your pardon are presented in Figures:
An separation, personal, instance demand curve slopes downwards come the right, denote an train station relationship in between the price and also quantity request of a commodity.
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Market demand curve
Market demand curve: This curve is the graphical depiction of the sector demand schedule. A market need curve shows different quantities of a commodity which all consumer in a sector are willing to purchase at various price level at a offered time period, if other determinants remaining constant.
A market demand curve deserve to be plotted through consolidating individual demand curves. Therefore, market need curve is the horizontal summation the individual need curves.
Therefore, market demand curve is the horizontal summation of individual demand curves. In the instance given in Table 1 below, plot the price of eggs (column 1) against the summation of quantities demanded by A and also B (column 4) would stand for a market demand curve. This is presented in number below:
A market need curve, just like the individual demand curves, slopes downwards come the right, indicating an station relationship in between the price and quantity request of a commodity.
The negative slope of a need curve is a enjoy of the law that demand
However, that is important to recognize the factors why the demand curve slopes bottom to the right.
|80||2||4||2 + 4 = 6|
|70||4||6||4 + 6 = 10|
|60||6||10||6 + 10 = 16|
|50||9||15||9 + 15 = 24|
|40||14||22||14 + 22 = 36|
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Why the need curve slopes downward?
Generally, the demand curve slope downwards. It signifies that consumer buy much more at reduced prices. Us shall now shot to recognize why the need curve slopes downward?
Different explanations have actually been given different economists because that the procedure of the law of demand. This are explained below: